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TAX GUIDE

2027 Federal Pay Raise: Zero for Civilians, 3.8% for LEOs

KEY INSIGHT
The President's August 26, 2026 letter sets the 2027 pay adjustment for civilian federal employees at zero: base pay and locality pay will not change from the 2026 rates (House Document 119-189, read November 2026). Law enforcement pay is separately to rise 3.8 percent through OPM special salary rates (tentatively from January 10, 2027, per OPM), and military basic pay rises 5.0 to 7.0 percent.
At a glance

Key Facts

Civilian base and locality pay
Unchanged from 2026
Would otherwise have been
3.1% across the board + locality
Law enforcement (via OPM)
Up 3.8% (OPM special rates)
Armed Forces basic pay
5.0% to 7.0% by grade
Letter dated
August 26, 2026
Introduction

Every year the President decides, by the end of August, whether federal civilian employees get the raise that the law would otherwise give them. For 2027 the answer in the President's letter to Congress is no: the alternative plan sets the civilian adjustment at zero. This guide reports exactly what that letter says, what the law would otherwise have paid, and what is different for law enforcement and for the military. It does not give 2027 pay tables, because those are not published yet.

Section 01

What the President Decided

The White House letter to the Speaker of the House, dated August 26, 2026, transmits an alternative plan for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems, and for members of the Armed Forces in January 2027. It states: "I have determined that for 2027, base pay and locality pay for civilian Federal employees will not change from the 2026 rates." The letter was referred jointly to the House Committees on Oversight and Government Reform and on Armed Services on August 27, 2026.

The letter explains the legal basis. Title 5 of the U.S. Code authorizes the President to implement alternative plans for pay adjustments if, because of national emergency or serious economic conditions affecting the general welfare, he views the increases that would otherwise take effect as inappropriate. The President cites 5 U.S.C. 5303(b) and 5 U.S.C. 5304a and says he has decided to set the adjustment at zero for the 2027 pay year.

Section 02

What the Law Would Otherwise Have Paid

According to the same letter, without the alternative plan, under current law, locality pay for the civilian workforce would automatically increase by an average of 20.6 percent beginning in January 2027, costing $26 billion in the first year alone. It would take effect along with an additional 3.1 percent across-the-board increase for the base General Schedule.

To see what a zero adjustment means in dollars, take a General Schedule employee with base pay of $80,000. The 3.1 percent across-the-board increase alone would have added $2,480 (our arithmetic: $80,000 x 3.1%), before any locality pay change. Under the alternative plan that amount is zero. The letter gives the averages for the whole workforce; the locality change for any one area is not stated.

Section 03

Law Enforcement Pay

The letter says that to increase recruitment and retention in critical law enforcement roles, at the President's direction the Office of Personnel Management shall use its statutory authority to increase 2027 compensation for law enforcement personnel by 3.8 percent. The letter adds that this change is part of a separate process from the alternative pay plan, and it does not define which positions count as law enforcement personnel.

OPM has since said how it will do this. In its November 6, 2026 memorandum to agency human resources chiefs (CPM 2026-13) and its 2027 special rates FAQ, OPM says it will use its special salary rate authority under 5 U.S.C. 5305 and 5 CFR 530, subpart C. It will raise its existing law enforcement special rate tables (L001 through L140) by 3.8 percent, with a tentative effective date of January 10, 2027, and it expects to release the new tables by the end of the calendar year. Employees already covered by those tables keep that coverage in 2027.

OPM also says coverage will be broader than in 2026, but it has not announced final coverage. The memo lists proposed additions, subject to agency review, such as General Schedule employees in approved law enforcement officer positions, the 0083 police series, certain 0080 security administration positions with arrest authority, and the 1811 criminal investigation series. OPM says newly covered employees would receive about 6.7 percent. Special rates cannot exceed Executive Schedule level IV, which OPM says stays at $197,200 in 2027, so employees at or near that cap may get less than the full increase or none. If you think this applies to you, wait for OPM's final coverage list.

Section 04

Military and Uniformed Services

For members of the Armed Forces, the President determined under 37 U.S.C. 1009(e) a 2027 monthly basic pay increase of 7.0 percent for grades E1 to E5, 6.0 percent for grades E6 to O3, and 5.0 percent for grades O4 and above, subject to the caps in 37 U.S.C. 203, effective January 1, 2027. Uniformed service members who do not serve in the Armed Forces get a 3.6 percent increase in monthly basic pay from January 1, 2027.

Group2027 adjustmentEffective
Civilian General Schedule and certain other pay systems0% (base and locality pay unchanged)January 2027
Law enforcement personnel (separate OPM process)3.8% (existing OPM special rate tables)Tentatively January 10, 2027 (OPM)
Armed Forces, grades E1 to E57.0%January 1, 2027
Armed Forces, grades E6 to O36.0%January 1, 2027
Armed Forces, grades O4 and above5.0%January 1, 2027
Other uniformed services3.6%January 1, 2027
Section 05

What Happens Next, and What We Could Not Confirm

The Office of Personnel Management runs the General Schedule, Law Enforcement Officer and Federal Wage System pay programs, and publishes each year's salary tables on its Salaries and Wages page. When we read that page on 9 November 2026 it carried tables for 2026 and earlier years, and none for 2027. We found no law or executive order that changes the August letter, so treat the zero adjustment as the current plan, not a final outcome. The letter is a plan sent to Congress; it does not say whether Congress will act, and we do not predict that. OPM says it expects to issue the law enforcement special rate tables by the end of 2026. Check OPM's Salaries and Wages page for the published 2027 tables.

Section 06

Official sources used

All figures on this page were read from these pages on 9 November 2026.

FAQ

Frequently Asked Questions

Will federal employees get a pay raise in 2027?

The President's August 26, 2026 letter sets the 2027 pay adjustment for civilian employees under the General Schedule and certain other pay systems at zero: base pay and locality pay will not change from the 2026 rates.

How much would the 2027 raise have been without the alternative plan?

The letter says an additional 3.1 percent across-the-board increase for the base General Schedule, plus locality pay that would automatically increase by an average of 20.6 percent, costing $26 billion in the first year.

Do law enforcement officers get a raise in 2027?

The letter says OPM shall use its statutory authority to increase 2027 compensation for law enforcement personnel by 3.8 percent, through a process separate from the alternative pay plan. OPM says it will do this with special salary rates, tentatively from January 10, 2027, with final coverage and tables still to come and a pay cap that can reduce the increase for some employees.

How much is the 2027 military pay raise?

The letter sets 7.0 percent for grades E1 to E5, 6.0 percent for grades E6 to O3 and 5.0 percent for grades O4 and above, effective January 1, 2027, subject to the caps in 37 U.S.C. 203. Other uniformed services get 3.6 percent.

Is the 2027 federal pay freeze final?

It is the President's plan as sent to Congress on August 26, 2026. We found no law or executive order changing it as of 9 November 2026.

Where are the 2027 General Schedule pay tables?

OPM publishes them on its Salaries and Wages page. When we looked on 9 November 2026 it had tables for 2026 and earlier, not 2027.

What law lets the President set an alternative pay plan?

Title 5 of the U.S. Code, sections 5303(b) and 5304a, which allow alternative plans if, because of national emergency or serious economic conditions affecting the general welfare, the President views the otherwise automatic increases as inappropriate.

How much is 3.1 percent of an $80,000 salary?

$2,480 (our arithmetic: $80,000 x 3.1%). That is the across-the-board increase the letter says would have applied, before locality pay.
Disclaimer:This guide gives general tax information for educational purposes and is not tax, legal or financial advice. Rules, forms and deadlines are set by the authorities named here and can change; check the official sources linked in this guide and talk to a qualified tax professional about your own situation.
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